Module 2 Notes - Module 2 Notes Strategic analysis External...

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Module 2 Notes Strategic analysis: External analysis – customers and competitors Required reading Chapter 2 Chapter 3 Learning objectives Knowledge objectives Describe the context and potential objectives of external analysis. List and explain the components of customer analysis. Review the concept of segmentation and segmentation variables. Identify competitors through customers or strategic groups. Describe the general competitor attributes used in strategic analysis. Identify competitor strengths and weaknesses in relevant asset or competencies Application objectives Review a customer analysis strategy. Perform a segmentation analysis. Develop a competitor analysis. 2.0 Overview This module introduces the process of external analysis commencing in Chapter 2 with customer and segmentation analysis, a key part of any marketing strategy. It also introduces competitor analysis. Companies must constantly monitor immediate competitors and their strategies while scanning the external horizon for new entrants who may arrive through different mechanisms. Chapter 3 of Aaker details specific ways to identify and assess competitors and their strategies. competitors identified by their customers or their rivals the market in which the company chooses to compete; and characteristics and trends of external elements
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2.1 External and customer analysis External analysis involves an examination of current and future threats and opportunities that may affect the company. A framework is illustrated in Figure 2.1 (Aaker, page 20). All external factors are to be considered from the perspective of their effect on present and future company strategy. That is the purpose of an external analysis. With that frame of reference, it is useful to generate questions related to strategic uncertainties, such as the timing of a competitor’s entrance into your market or product acceptance by your customers. Scenario planning is key to anticipating the perspectives and actions of customers and competitors. Finally, it is important to define the scope of the investigation and subsequent analysis in a manner that is neither too broad nor too narrow. Activity 1: Orijen Pet Food Orijen’s customer analysis Visit the Orijen website at http://www.orijen.ca/ Consider the company’s customers and potential customers with respect to questions from Figure 2.3 on (Aaker, page 26). Is there evidence that Orijen is using a similar framework of customer analysis in building its business? What do you imagine was an unmet need that led to the growth of their business? If you wish further insight into the pet food market read this Agriculture Canada report . 2.2 Customer segmentation Accurate segmentation is key in gaining a market advantage. Identifying customers also helps a company define its mission. The different segmentation variables include demographics, usage, and benefits sought. Determining the benefits sought by customers is perhaps the first and best way to segment a market, particularly if no other variable is obvious. Figure 2.3 (Aaker, page 23)
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